Thailand’s upstream natural gas sector is struggling to reverse falling output due to bad planning and policy from the government, coupled with a seeming lack of innovation at PTT Exploration & Production (BKK:PTTEP), a state-backed company, that is taking increasing control of the country’s gas resources.
Falling domestic gas supplies from the Gulf of Thailand have led the Southeast Asian nation to import more liquefied natural gas (LNG) amid surging global prices, which has significantly weakened the country’s energy security. Natural gas is a key fuel for power generation in Thailand, as a result, the Thai people are facing much higher electricity bills. Moreover, reports suggest Thailand is at risk of a fuel crunch with imported LNG becoming too pricey.
Significantly, the share of LNG in the country’s total gas supply has jumped to 40%, up from 20%, while domestic…
